I'm very tempted with The Hobbit for Xbox One at $8, but do I really need another Lego game? Still have Star Wars III, the two Harry Potters, the Lord of the Rings, the Lego Movie, the Avengers one, Batman 3, Indian 2 and pirates on the backlog

That is the MSRP. So, that is the price at Walmart, Amazon, MS Store, Best Buy, Gamestop, Target, or anywhere else you might buy your games and consoles for. And, since they have released a few more bundles with games and 1TB consoles for $400, $500 seems a bit over priced, to me.